Rumors of part-time riches and bringing in $100+ per hour are quite popular in the vending machine business world. Owning a vending business could make you that much money with less per-day time spent, but the claim is usually more of a marketing ploy from a savvy machine sales company than a strict look at reality.
In order to reach these levels of profitability with your own vending company, you need to make the best choices and focus on business building for the long term. There is only a small chance you will become a millionaire, so do not get carried away by grandiose claims. Keep it real! Instead of planning what to do with all the riches you think you will bring in, commit to learning what it takes to succeed and the real work necessary to build your company.
The first thing to realize is that you will need more than a couple of machines to make a considerable income. It is virtually impossible to get one or two machines bringing in thousands of dollars every week. The classic 80/20 Pareto Principle works for vending companies as well. The majority of your machine placements will result in low but steady profits over time. One machine may make no more than $5 per week while others make $100 or more.
Success in this industry is a numbers’ game, and there is a lot of trial and error to find the sweet spot for profits. Of course, market research goes into it too. Place your vending machines, change products or prices, see what sells, and be prepared to move the machines to new locations and get new accounts regularly. All these routine activities, if done properly, will positively impact your bottom line. It’s essential, however, to understand which are your best-selling products and most profitable locations. Sounds like an easy job, since your daily operations will be generating massive amounts of data that you could leverage to back the business decisions you will be taking. Don’t reinvent the wheel: instead of spending loads of time entering inventory and purchase data in endless, heavy spreadsheets, consider investing in easy to use vending machine software (VMS) right from the start. The proper software will help gain valuable insight into the performance of each machine, product, and location, empowering you to quickly take the right data-driven decisions that will help you stand out from the crowd and stay ahead of the competition. (Learn how specialized vending management software can help you streamline operations, optimize inventory and improve your bottom line).
In the popular book “Rich Dad, Poor Dad” by Robert Kiyosaki, something is only an asset to you or your business if it makes you money. You need every vending machine you place to be an asset. Keep working at it until this is true.
The quest for $1000+ profits daily will not happen overnight or with your first machine placements. The companies that want to sell you vending machines will not let you know that these numbers will require 75-100 machines to reach those totals. That’s a lot of placement, stocking, maintenance, and marketing work and expense! Also, even the most aggressive collection schedule of 1-2 months will bring you that type of money.
Vending is not a “Get Rich Quick” opportunity. In order to achieve the types of profit goals frequently spoken of by marketers, you need a large number of vending machines, constantly change and upgrade your placement and offers, add more machines over time, and work hard. The outlook is not all drudgery for low pay, however! If you stick with it and focus on smart growth, the vending business can provide a great income, flexible work hours, and the ability to run everything from home.
Eager to learn more about how VendSoft can make your vending machine business successful? Read more here or start your free 14-day trial now.